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How would a change in income affect the quantity demanded of an inferior good?

Goods can be classfied as either normal or inferior when we examine how a change in income of a consumer affects how much of agiven good they choose to consume.

In most circumstances one ...

Answered by Bertie M. • Economics tutor

11347 Views

What are the effects on UK businesses after an increase in fuel prices?

Due to the UK economy being heavily dependent on fuel, it is inevitable that an increase in fuel prices will affect almost every UK business. However these affects can vary from sector to sector.

Answered by Tejan S. • Economics tutor

11475 Views

What is the Laffer curve?

The Laffer curve shows the theoretical relationship between tax rates and tax revenues.

Imagine a government charges a 0% income tax; they definitely won’t receive any money from that tax...

Answered by Matthew D. • Economics tutor

3096 Views

What happens to the Production Possibility Frontier (PPF) when productivity only increases in one good?

We start here with an initial PPF which shows the possible combinations of apples and computers that an economy can produce with the resources it has. If a new way of creating computer chips makes the ...

Answered by Matthew D. • Economics tutor

5043 Views

What factors cause the shifts and movements of the demand curve?

A movement along the demand curve is caused by a change in price only. If price decreases, quantity increases and demand is said to have extended or expanded. If price increases, quantity decrea...

Answered by Elliot G. • Economics tutor

26148 Views